Apple has officially stopped online sales for its Series 9 and Ultra 2 smartwatches in the US, as a complete ban could go into effect on Sunday.
The two smartwatches were labeled as ‘unavailable’ at 3pm ET, with no future purchase option – but customers can collect orders in-store until December 24.
The move is due to the International Trade Commission (ITC) rejecting Apple’s bid to get around the cease-and-desist order due to patent infringement claims.
Medical tech company Masimo is suing Apple, claiming it stole hardware from two of its patents.
The announcement means the only available Apple Watch in the US will be the company’s budget SE model.
The two smartwatches were labeled as ‘unavailable’ at 3pm ET, with no future purchase option – but customers can collect orders in-store until December 24
The fate of the Apple Watch now rests in the hands of the White House, and if President Joe Biden does not veto the order, the tech giant will have to wait until 2028 to begin sales because that is when Masimo’s two patents expire.
Thursday’s announcement was not a surprise, as Apple revealed it would pull the Series 9 and Ultra 2 from its online store ‘preemptively taking steps to comply should the ruling stand.’
In October, the ITC announced its ruling, finding that the Apple Watches infringed on two patents owned by Masimo.
A Masimo spokesperson told DailyMail.com: ‘Masimo is willing to settle. As Joe Kiani [CEO] indicated, we believe the path forward is to have honest, good-faith discussions with Apple to explore the various ways the parties could resolve their dispute.’
However, Apple is said to have a $17 billion rescue mission in place, in which engineers are working to tweak the algorithms that measure blood oxygen.
Details of the exact software changes are unknown, but industry experts speculate Apple will change algorithms enough to address patent violations.
The move is due to a legal dispute over the technology Apple’s smartwatches use to run their blood oxygen feature. Medical tech company Masimo is suing Apple, claiming it stole hardware from two of its patents
Apple is said to have a $17 billion rescue mission in place, in which engineers are working to tweak the algorithms that measure blood oxygen
However, Masimo’s patents focus on hardware, not software, which emits light on the skin to collect data on blood oxygen levels.
Masimo told Bloomberg that a software fix would be an insufficient remedy and ‘the hardware needs to change.’
If Apple does change the algorithm, the tweaks could reduce that accuracy or change the sensor’s functionality, making the feature irrelevant.
The report also noted that if Apple is forced to replace hardware, it will take at least three months to produce and ship corrected models.
The company’s retail locations have already been told to swap out signs for the wearable, promoting the device without showing images of the Series 9 and Ultra 2 – Apple’s latest smartwatches that are the focus of the ban.
Customer service teams were also informed in a memo that Apple is no longer replacing out-of-warranty models going back to Apple Watch Series 6.
If a customer has a broken screen, for instance, they would not be able to get the issue fixed by Apple, the Bloomberg News report said, adding the company will still offer help that can be done via software, such as reinstalling the operating system.
Wedbush Securities analyst Dan Ives estimates Apple’s holiday-season sales will be reduced by $300 million and $400 million if the patent dispute results in the two watch models being pulled from the market during the year’s final week.
The dispute began in 2013 when Masimo met with Apple to discuss a possible collaboration for the Apple Watch project.
The announcement means the only available Apple watch in the US will be the company’s budget SE model
But Apple opted not to join Masimo due to its focus on hospital products, which does not align with the tech giant’s consumer focus model.
Masimo sued Apple in federal court in 2020 and again in 2021 after the Apple Watch Series 6 release, the first model to have the blood oxygen feature.
According to the company website, Masimo, founded by Kiani in 1989, holds thousands of healthcare and consumer-focused patents.
Data shows that Masimo is valued at $6.69 billion, and Kiani’s net worth is $1.3 billion.
According to Forbes, Kiani has spent $60 million fighting Apple in court.
A Masimo spokesperson told DailyMail.com: ‘After a thorough multi-year legal investigation, the ITC found that Apple infringed certain of Masimo’s patented innovations for measuring blood oxygen.
‘The decision to exclude certain foreign-made models of the Apple Watch demonstrates that even the world’s most powerful company must abide by the law.
‘The ITC’s expert judgment in this matter should be respected, protecting intellectual property rights, maintaining public trust in the United States’ patent system and encouraging US industry.